Benefits: Summer Prepay Deductions
March 18, 2013
If you are an academic year (9 month), or other employee* who does not work during one or more of the summer months and are expected to return for the fall semester, you are required to have multiple benefit deductions taken from your earnings paid during the spring semester to cover insurance premiums for the summer months. These deductions are referred to as "Summer Prepay" deductions. Summer Prepay deductions will be taken along with your regular monthly insurance deductions on your April 1, May 1 and May 31 paychecks.
*Annual basis (12 month) Faculty, Academic Staff or paid bi-weekly and are not working during one or more of the summer months.
If you are an academic year employee, insurance premiums cannot be deducted from summer earnings. If you are expected to return in the fall, your benefits must be continuous. You may not opt out of summer coverage.
Your division/department benefits office will determine your eligibility for Summer Prepay deductions. You need to let them know if you plan on returning in the fall semester to either your current or different department/institution.
If you are an annual basis (12 month) Faculty, Academic Staff or paid bi-weekly, and are not working during one or more of the summer months, you must contact your institution's payroll and benefits office to set up summer prepay deductions. The number of benefit deductions and how these deductions appear on your earnings statement will be based on your individual situation.
You will have 2 deductions for each benefit plan taken from your last 3 checks of the semester, with the exception of Income Continuation Insurance (ICI). If enrolled in ICI, you will have 2 additional deductions on your May 1 check and 1 additional deduction on your May 31 check.
Multiple deductions are not taken for the following plans: Tax-Sheltered Annuity 403(b) plan, Wisconsin Deferred Compensation, Employee Reimbursement Account (Health Care and Dependent Care Flexible Spending Accounts). Deductions for these plans are only taken during the academic year.
Summer prepay deductions will appear as a lump sum amount on your earnings statement. All deductions taken pre-tax (most medical-related premiums and a portion of State Group Life premiums) will be added together under the name "Prebtx" and all deductions taken post-tax (most life insurance premiums) will be added together under the name "Preatx." Your regular benefit deductions for the month will continue to be listed under the plan name. For example, if you carry family Dean Health Insurance and Single VSP Insurance, you will see a $211 deduction under Dean Health Plan and a $5.24 deduction under Vision Service Plan (VSP). These deductions are typically taken on a pre-tax basis. If you have one extra deduction for each plan, there will be a total of $216.24 ($211.00 + $5.24) listed under Prebtx on each earnings statement impacted by the additional deductions.
If Summer Prepay deductions are taken and it is later determined that you are not returning to employment for the fall semester, you will be refunded overpaid premiums. If your department/division determines that you are eligible for Summer Prepay deductions, it is not a guarantee of a summer or fall employment contract.
If you have questions, please contact your institution's payroll and benefits office.
Source: UW System Administration
Categories: Payroll